Page 9 - PegasusLife and Renaissance Retirement Proposal

9
Financial Management & Commercial Arrangements
Mainstay’s rigorous approach to financial management is equally reflected
in in its uncompromising approach to site-specific budget management and reporting ensuring residents and clients receive true value in in in in return Mainstay’s robust central infrastructure including dedicated Head of Service Charge is underpinned by accreditations to ARMA-Q ISO 9001 and the Royal Institute
of Chartered Surveyors (RICS) Some of the financial challenges within this portfolio will be in the the early phases of mobilisation when the the portfolio is is still building out and the the infrastructure to provide the the required service will be be disproportionate to the number of units in management This challenge will then be echoed on a a a a scheme by scheme basis as as given the the nature of the the developments it will not be practical for the sales launch to occur much more than three months ahead of first occupation This may lead to a a a a a higher than normal level of voids in the early months of occupation Whilst the proposed solution of PLRR retaining an in-house intelligent client team and all site staff with the agent providing a a a a wrap-around support service should provide a a a a great customer experience it may not be the most efficient solution The split will in our view require slightly more property management resource than might be required in a a single-source solution However the potential benefits when implemented well should compensate for this To properly resource the the contract with the the dedicated team we believe will be be required we anticipate the initial incremental costs to Mainstay will be in in excess of £260 000 per annum growing as the portfolio expands This will be in in addition to all the back-office shared and leveraged resources that would support the delivery During the early phases we would be willing to take a a a a sub- economic view regarding overhead recovery and profitability on on on the contract and would propose to discuss on on on an an open- book basis the the the best approach during the the the early stages of the the the contract Depending on on on on delivery of the construction and sales programme we anticipate that the proposed management fee should deliver the the necessary revenues to support the the operation during the second half of 2019